Dual Purpose Audit Tests Are Useful as Which of the Following

question 96

Multiple Choice

Dual purpose audit tests are useful as which of the following types of tests?

• A)tests of controls
• B)tests of account balances.
• C)tests of controls or tests of account balances
• D)tests of controls and tests of account balances.

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Definitions:

Cost Method

An accounting technique used to value an investment, where the investment is recorded at its acquisition cost without adjustment for market changes.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits, representing a portion of the earnings allocated for distribution.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been deducted from total revenue.

Cost Method

Cost Method is an accounting methodology for investment, where the investment is recorded at its acquisition cost without considering dividends or changes in market value.